Given that <span>In 1981, 16 percent of wives earned more than their husbands.
It is reported that in 2005, about 26% of wives earned more than their husbands.</span>
Answer:
(a1) $761,000
(a2) $504,000
(a3) $793,000
Explanation:
(a-1) Amount of net sales reported as revenue in the income statement:
= Cash sales + Credit sales
= $289,000 + $472,000
= $761,000
(a-2) Amount of cash received from collecting accounts receivable:
= Credit sales + Decrease in accounts receivable
= $472,000 + $32,000
= $504,000
(a-3) Amount of cash received from customers:
= Cash sales + Amount of cash received from collecting accounts receivable
= $289,000 + $504,000
= $793,000
Answer:
The answer is:
Asset will be overstated
Net income will be overstated
Explanation:
Because of the incorrect capitalization(the process of converting or adding to a firm's asset):
1. Assets are overstated. Assets that shouldn't are added to the entire assets are added. So it's increasing the company's asset whereas it's not.
2. Net income are overstated. Because depreciation too will have to be charged for the asset that wasn't there, therefore, net asset will be overstated.
Debits and credits are used in a company’s bookkeeping or or double-entry accounting.
Debits and credits are the bookkeeping entries that balance each other. Debits means all of the money coming into an account, while credits means all of the money going out of an account. When recording a transaction, every debit entry must have a corresponding credit entry of the same amount.
A debit entry is always kept on the left side of an entry. A debit increase asset or expense accounts, and decreases liability, revenue or equity accounts.A credit is always placed on the right side of an entry. It increases liability, revenue or equity accounts and decreases asset or expense accounts.
To learn more about Debits and credits here
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<span>If the economy booms and people's' incomes rise, then the demand curve for a normal good such as new houses will shift to the right and the equilibrium quantity of new houses produced will increase.
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Hope this helps !
Photon</span>